Cyber Liability Insurance Coverage – Everything You Need To Know
If you run your own business, odds are internet security is an important issue – possibly a lot more important than you realize. Hackers are more rampant than ever, and a breach of security can disrupt your business in a number of devastating ways. From stealing customer data to interfering with operating systems, a single breach in your company’s internet security can compromise your finances and reputation. Fortunately, cyber liability insurance coverage is available to protect you financially in the event of a breach.
What Online Dangers Do Businesses Face?
Hackers who are trying to disrupt your business have many options and strategies, but they’re only effective if they can access your online network. The first step in making a decision about whether you need a cyber liability insurance policy is to understand the potential threats. These are some of the most common ways that a cyber security breach could impact your business:
Business Interruption
Is your business operation dependent on computers? Hackers can potentially cause damage to your online networks, compromising your business’s ability to operate or to provide for clients and third parties. As you might imagine, this can be costly in terms of operating failure, reputation, and fixing the problem. Cyber liability coverage can spare your business the time and money involved in enduring and repairing damage from a business interruption due to technology failures.
Cyber Extortion
Would you pay to regain control of your company’s networks and data storage? Many CEO’s are willing to pay, and hackers know it. They can seize control of your stored data and websites, throwing a wrench into your business operations until you pay the ransom they demand. This can interrupt vital business processes in addition to costing a lot of money, regardless of the outcome. Fortunately, cyber liability insurance can protect you from the financial burden of cyber extortion, allowing you to focus on the important parts of your workday.
System Failure
Many threats can cause a complete system failure, and the loss of valuable data and code could cost thousands of man-hours to replace. While your normal business liability insurance would cover hardware in the event of fire, natural disaster, or some other problem, your coding and data would not be covered—unless you have a cyber liability policy.
Data Breaches
No CEO wants to admit that their customers’ personal data has been compromised, but when a data breach occurs, your most valuable information could be at risk. Data breaches have become such high profile crimes that it’s now required by law that companies reveal the extent of the damage to clients and customers who’ve been affected. Data breaches can be costly, as there may be necessary security system repairs, ID theft protection services, and legal protection involved. With cyber liability insurance coverage, you can rest easy knowing that these costs can be covered in the event of a breach.
5 Key Benefits Of Cyber Liability Insurance
A traditional business liability policy is unlikely to protect against most cyber exposures. As technology become ever more prominent in the business world, it’s crucial to ensure you are protected from cyber threats. Cyber liability insurance coverage can help you enjoy peace of mind that you are covered in the event that any of the above risks occur. Here are some key benefits of cyber liability policies:
Business Interruption Loss Reimbursement
This coverage protects you against losing crucial income that may have been lost during a breach. Get reimbursed, and minimize damage to your business operations.
Cyber Extortion Coverage
A common technique used by cyber criminals is to take over your networks or engage in black mail in exchange for a ransom. A cyber liability policy can help you recoup funds if this happens.
Data Breach Coverage
In the event of a data breach, valuable customer information may have been stolen, and your customers will have to be notified. The right coverage can help you regain their trust and will assist with the costs of repair and other recovery measures.
Legal Support
Cyber-attacks may involve a lot of complex details, and many entrepreneurs will want some legal assistance. These legal fees can be a significant expense. Cyber coverage can assist with your legal fees.
Forensic Support
After an attack from a cyber-criminal, it’s natural to take every action to catch the offender and ensure that a breach never happens again. Cyber coverage can help with the consulting fees and other costs of the investigation.
Protect Yourself Against Hackers – King Street Agency Can Help!
Cyber liability insurance is specifically designed to address the risks that come with using modern technology. The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure. It is important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.
At King Street Agency, our experienced agents are ready to advise you. Request a quote today.
